GRANITE CONSTRUCTION INC (GVA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GVA - US3873281071 - Common Stock
115.2 USD
+3.94 (+3.54%)
115.2 USD
0 (0%)
Taking everything into account, GVA scores 6 out of 10 in our fundamental rating. GVA was compared to 55 industry peers in the Construction & Engineering industry. GVA has an average financial health and profitability rating. GVA is growing strongly while it is still valued neutral. This is a good combination! This makes GVA very considerable for growth investing!
1. Profitability
1.1 Basic Checks
GVA had positive earnings in the past year.
In the past year GVA had a positive cash flow from operations.
Of the past 5 years GVA 4 years were profitable.
GVA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GVA has a Return On Assets (4.40%) which is in line with its industry peers.
GVA's Return On Equity of 15.79% is fine compared to the rest of the industry. GVA outperforms 61.82% of its industry peers.
GVA has a Return On Invested Capital (6.20%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for GVA is significantly below the industry average of 17.87%.
The 3 year average ROIC (3.67%) for GVA is below the current ROIC(6.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 15.79% | ||
| ROIC | 6.2% |
ROA(3y)3.19%
ROA(5y)0.78%
ROE(3y)8.55%
ROE(5y)2.36%
ROIC(3y)3.67%
ROIC(5y)N/A
1.3 Margins
GVA has a Profit Margin (4.31%) which is in line with its industry peers.
GVA's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 6.08%, GVA is in line with its industry, outperforming 54.55% of the companies in the same industry.
With a Gross Margin value of 16.39%, GVA perfoms like the industry average, outperforming 47.27% of the companies in the same industry.
GVA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.08% | ||
| PM (TTM) | 4.31% | ||
| GM | 16.39% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y121.93%
PM growth 5YN/A
GM growth 3Y11.34%
GM growth 5Y17.02%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GVA is destroying value.
Compared to 1 year ago, GVA has less shares outstanding
GVA has less shares outstanding than it did 5 years ago.
GVA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.55 indicates that GVA is not a great score, but indicates only limited risk for bankruptcy at the moment.
GVA has a Altman-Z score (2.55) which is in line with its industry peers.
GVA has a debt to FCF ratio of 3.86. This is a good value and a sign of high solvency as GVA would need 3.86 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.86, GVA is doing good in the industry, outperforming 67.27% of the companies in the same industry.
GVA has a Debt/Equity ratio of 0.84. This is a neutral value indicating GVA is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.84, GVA perfoms like the industry average, outperforming 43.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 2.55 |
ROIC/WACC0.65
WACC9.59%
2.3 Liquidity
A Current Ratio of 1.21 indicates that GVA should not have too much problems paying its short term obligations.
GVA has a Current ratio (1.21) which is in line with its industry peers.
A Quick Ratio of 1.12 indicates that GVA should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.12, GVA is not doing good in the industry: 65.45% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
GVA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 61.71%, which is quite impressive.
GVA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.75% yearly.
Looking at the last year, GVA shows a small growth in Revenue. The Revenue has grown by 6.87% in the last year.
The Revenue has been growing slightly by 6.57% on average over the past years.
EPS 1Y (TTM)61.71%
EPS 3Y125.25%
EPS 5Y32.75%
EPS Q2Q%31.71%
Revenue 1Y (TTM)6.87%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%12.39%
3.2 Future
Based on estimates for the next years, GVA will show a very strong growth in Earnings Per Share. The EPS will grow by 22.48% on average per year.
Based on estimates for the next years, GVA will show a quite strong growth in Revenue. The Revenue will grow by 9.62% on average per year.
EPS Next Y38.93%
EPS Next 2Y24.52%
EPS Next 3Y22.48%
EPS Next 5YN/A
Revenue Next Year10.92%
Revenue Next 2Y10.76%
Revenue Next 3Y9.62%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.63, which indicates a rather expensive current valuation of GVA.
GVA's Price/Earnings ratio is rather cheap when compared to the industry. GVA is cheaper than 81.82% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.76. GVA is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 18.39 indicates a rather expensive valuation of GVA.
Based on the Price/Forward Earnings ratio, GVA is valued cheaply inside the industry as 89.09% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of GVA to the average of the S&P500 Index (23.96), we can say GVA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.63 | ||
| Fwd PE | 18.39 |
4.2 Price Multiples
80.00% of the companies in the same industry are more expensive than GVA, based on the Enterprise Value to EBITDA ratio.
87.27% of the companies in the same industry are more expensive than GVA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.51 | ||
| EV/EBITDA | 12.92 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GVA's earnings are expected to grow with 22.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.5
PEG (5Y)0.6
EPS Next 2Y24.52%
EPS Next 3Y22.48%
5. Dividend
5.1 Amount
GVA has a yearly dividend return of 0.48%, which is pretty low.
Compared to an average industry Dividend Yield of 1.65, GVA pays a better dividend. On top of this GVA pays more dividend than 87.27% of the companies listed in the same industry.
With a Dividend Yield of 0.48, GVA pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
5.2 History
The dividend of GVA decreases each year by -0.19%.
GVA has been paying a dividend for at least 10 years, so it has a reliable track record.
GVA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.19%
Div Incr Years0
Div Non Decr Years33
5.3 Sustainability
GVA pays out 12.45% of its income as dividend. This is a sustainable payout ratio.
DP12.45%
EPS Next 2Y24.52%
EPS Next 3Y22.48%
115.2
+3.94 (+3.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners119.35%
Inst Owner Change3.25%
Ins Owners1.09%
Ins Owner Change-0.65%
Market Cap5.03B
Revenue(TTM)4.24B
Net Income(TTM)182.46M
Analysts80
Price Target132.8 (15.28%)
Short Float %10.32%
Short Ratio6.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Yearly Dividend0.52
Dividend Growth(5Y)-0.19%
DP12.45%
Div Incr Years0
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.76%
Min EPS beat(2)6.79%
Max EPS beat(2)12.74%
EPS beat(4)3
Avg EPS beat(4)29.36%
Min EPS beat(4)-4.36%
Max EPS beat(4)102.29%
EPS beat(8)4
Avg EPS beat(8)12.62%
EPS beat(12)7
Avg EPS beat(12)-128.57%
EPS beat(16)8
Avg EPS beat(16)-113.13%
Revenue beat(2)0
Avg Revenue beat(2)-3.91%
Min Revenue beat(2)-4.31%
Max Revenue beat(2)-3.52%
Revenue beat(4)1
Avg Revenue beat(4)-1.97%
Min Revenue beat(4)-4.31%
Max Revenue beat(4)1.87%
Revenue beat(8)3
Avg Revenue beat(8)0.82%
Revenue beat(12)5
Avg Revenue beat(12)-0.26%
Revenue beat(16)8
Avg Revenue beat(16)0.21%
PT rev (1m)-1.36%
PT rev (3m)5%
EPS NQ rev (1m)-2.52%
EPS NQ rev (3m)-10.16%
EPS NY rev (1m)0.23%
EPS NY rev (3m)-0.45%
Revenue NQ rev (1m)2.02%
Revenue NQ rev (3m)0.87%
Revenue NY rev (1m)-0.62%
Revenue NY rev (3m)-1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.63 | ||
| Fwd PE | 18.39 | ||
| P/S | 1.19 | ||
| P/FCF | 14.51 | ||
| P/OCF | 10.87 | ||
| P/B | 4.35 | ||
| P/tB | 8.62 | ||
| EV/EBITDA | 12.92 |
EPS(TTM)5.87
EY5.1%
EPS(NY)6.26
Fwd EY5.44%
FCF(TTM)7.94
FCFY6.89%
OCF(TTM)10.59
OCFY9.2%
SpS97.05
BVpS26.48
TBVpS13.36
PEG (NY)0.5
PEG (5Y)0.6
Graham Number59.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 15.79% | ||
| ROCE | 10.25% | ||
| ROIC | 6.2% | ||
| ROICexc | 8.61% | ||
| ROICexgc | 12.6% | ||
| OM | 6.08% | ||
| PM (TTM) | 4.31% | ||
| GM | 16.39% | ||
| FCFM | 8.18% |
ROA(3y)3.19%
ROA(5y)0.78%
ROE(3y)8.55%
ROE(5y)2.36%
ROIC(3y)3.67%
ROIC(5y)N/A
ROICexc(3y)5.78%
ROICexc(5y)N/A
ROICexgc(3y)7.39%
ROICexgc(5y)N/A
ROCE(3y)6.06%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y121.93%
PM growth 5YN/A
GM growth 3Y11.34%
GM growth 5Y17.02%
F-Score7
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 3.86 | ||
| Debt/EBITDA | 2.39 | ||
| Cap/Depr | 78.54% | ||
| Cap/Sales | 2.74% | ||
| Interest Coverage | 9.61 | ||
| Cash Conversion | 114.13% | ||
| Profit Quality | 189.88% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 2.55 |
F-Score7
WACC9.59%
ROIC/WACC0.65
Cap/Depr(3y)135.78%
Cap/Depr(5y)115.36%
Cap/Sales(3y)3.7%
Cap/Sales(5y)3.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)61.71%
EPS 3Y125.25%
EPS 5Y32.75%
EPS Q2Q%31.71%
EPS Next Y38.93%
EPS Next 2Y24.52%
EPS Next 3Y22.48%
EPS Next 5YN/A
Revenue 1Y (TTM)6.87%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%12.39%
Revenue Next Year10.92%
Revenue Next 2Y10.76%
Revenue Next 3Y9.62%
Revenue Next 5YN/A
EBIT growth 1Y80.62%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year113.54%
EBIT Next 3Y40.17%
EBIT Next 5YN/A
FCF growth 1Y1319.85%
FCF growth 3YN/A
FCF growth 5Y133.59%
OCF growth 1Y342.92%
OCF growth 3Y175.18%
OCF growth 5Y32.58%
GRANITE CONSTRUCTION INC / GVA FAQ
What is the fundamental rating for GVA stock?
ChartMill assigns a fundamental rating of 6 / 10 to GVA.
What is the valuation status of GRANITE CONSTRUCTION INC (GVA) stock?
ChartMill assigns a valuation rating of 6 / 10 to GRANITE CONSTRUCTION INC (GVA). This can be considered as Fairly Valued.
Can you provide the profitability details for GRANITE CONSTRUCTION INC?
GRANITE CONSTRUCTION INC (GVA) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for GVA stock?
The Price/Earnings (PE) ratio for GRANITE CONSTRUCTION INC (GVA) is 19.63 and the Price/Book (PB) ratio is 4.35.
Is the dividend of GRANITE CONSTRUCTION INC sustainable?
The dividend rating of GRANITE CONSTRUCTION INC (GVA) is 5 / 10 and the dividend payout ratio is 12.45%.